Bullish Trade Setups You Must Wait For
Ryan Mallory | May 27, 2015 12:54AM ET
This could be one of the worst collection of long setups I've put together in a long, long time.
And trust me, it's not me, it's the charts. The setups are simply getting destroyed out there today.
There are a few gems out there, like Workday Inc (NYSE:WDAY) and QLogic Corporation (NASDAQ:QLGC), but WDAY reports earnings after the bell today, and quite frankly, if you are into the whole knife catching experience when it comes to this stock market, then by all means, go for it. But as for me, I am avoiding the long setups like the plague, and sticking with my lone short position that I have remaining in the portfolio right now.
Also worth noting is that there's probably a 50% chance that the bulls can put together some kind of bounce tomorrow in the form of a dead cat bounce. Today's technical damage is mind numbing, and there is nothing fake about it. The VIX is up 18%, T2108 (% of stocks trading above the 40-day moving average) is down a whopping 23% down to 38% overall.
So the weakness is there, and it is very apparent, and this just happens to be the first legitimate sell-off that we have seen since making new all-time highs last week.
So yes, I'm holding off on these long setups. They are nowhere near being ripe and need to mature a bit more before even giving consideration to them.
Here's the (sort-of) long setups for this week:
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